Pizza Hut set for the courts over cut-price pizza

Pizza wars, the $4.95 pizzas they spawned and the allegedly disastrous impact on Pizza Hut franchisees, is about to be put on trial in a case that will put the $170 billion franchise sector on edge.

The appeal lodged in the Federal Court of Australia will be heard next month, and up to 90 per cent of Pizza Hut franchisees are backing the class action by liquidator Bob Jacobs at Auxilium Partners.

It comes as the relationship between franchisees and franchisors has come under the spotlight, and legislative reforms are set to be introduced that would make franchisors jointly responsible for workplace abuses if they have significant control or influence on the franchisee.

Not surprisingly, the Franchise Council of Australia is fighting to water down the legislation. It will also be keeping an eye on the latest litigation.